Parkway purchases Tempe office tower in Phoenix

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Parkway Properties has purchased Tempe Gateway, a 264,000 square foot office tower located in the Tempe submarket of Phoenix, Arizona, for a purchase price of USD66.1m.

Tempe Gateway was built in 2009 and is currently 73.9 per cent occupied.

The property is expected to generate a 2013 estimated cash net operating income yield of approximately five per cent. The company does not plan to place a secured first mortgage on the property at this time.

With this purchase, Parkway now owns 788,000 square feet in the Tempe submarket of Phoenix.

James R Heistand, Parkway's president and chief executive officer, says: "We have seen strong leasing demand and positive rental rate growth at our other assets in this growing submarket, and we are delighted to expand our presence in Tempe with this value-add investment."